Huntsman Completes Textile Effects Divestiture

Rhea-AI Summary

Huntsman Corporation (NYSE: HUN) has finalized the sale of its Textile Effects division to Archroma for $593 million in cash, along with assumed pension liabilities. The net after-tax cash proceeds are estimated to be approximately $540 million, subject to standard closure adjustments. This strategic divestiture allows Huntsman to focus on its core operations in specialty chemicals, which generated revenues of about $8 billion in 2022. The transaction is aligned with the company’s ongoing efforts to optimize its portfolio and enhance operational efficiency.

Positive

• Completed the divestiture of Textile Effects for $593 million, strengthening focus on core operations.
• Expected net cash proceeds of approximately $540 million enhance liquidity.

Negative

• None.

THE WOODLANDS, Texas, Feb. 28, 2023 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the sale of its Textile Effects division to Archroma, a portfolio company of SK Capital Partners. The agreed purchase price was $593 million in cash plus assumed pension liabilities, and Huntsman expects the net after tax cash proceeds to be approximately $540 million before customary post-closing adjustments.

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2022 revenues of approximately $8 billion from our continuing operations. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 60 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 7,000 associates within our continuing operations. For more information about Huntsman, please visit the company's website at www.huntsman.com. 

Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/huntsman-completes-textile-effects-divestiture-301758440.html

SOURCE Huntsman Corporation

FAQ

What did Huntsman Corporation announce on February 28, 2023?

Huntsman announced the completion of the sale of its Textile Effects division to Archroma.

What is the sale price of Huntsman's Textile Effects division?

The agreed purchase price was $593 million in cash plus assumed pension liabilities.

What are the expected net proceeds from the Textile Effects sale?

Huntsman expects net after-tax cash proceeds of approximately $540 million.

How much revenue did Huntsman Corporation generate in 2022?

Huntsman reported approximately $8 billion in revenues from continuing operations for 2022.

What strategic direction is Huntsman Corporation focusing on after the sale?

Huntsman aims to optimize its portfolio and enhance operational efficiency.